Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve this question and it's for my assignment, it will be very helpful to solve this: 1. Baker Corporation provided the following Statements for

Please solve this question and it's for my assignment, it will be very helpful to solve this:

image text in transcribed
1. Baker Corporation provided the following Statements for 2014-15. Balance Sheet 2015 2014 Assets Cash 40,000 70,000 Accounts Receivable 320,000 350,000 Inventory 460,000 320,000 Total Current Asset 820,000 740,000 Gross Fixed Assets 560,000 520,000 Accumulated Depreciation 180,000 150,000 Net Fixed Asset 0,000 370,000 Total Asset 1,200,000 1,110,000 Liabilities & Stockholders' Equity Current Liabilities Accounts Payable 390,000 320,000 Notes Payable 110,000 90.000 Accrued Expense 20,000 20.000 Total Current Liabilities 520,000 430,000 Long Term Debt 320,000 350,000 Total Liabilities 840,000 780,000 Stockholders' Equity Common Stock at par ($1 each share) 100.000 100,000 Share Premium Reserve 150.000 150,000 Retained Earnings 110,080 80.000 Total Liabilities & Stockholders' Equity 1,200,000 1,110,000 Income Statement 2015 $ Sales 2,200,000 Cogs 1,420,000 Gross Profit 780,000 Operating Expenses 600,000 Operating Income (EBIT) 180,000 Interest 29,000 Earnings before Tax (EBT) 151,000 Tax (30%) 45,000 Earnings after Tax (Net Income) 106,000 Additional Information: 1. Purchased equipment paying $40,000 cash. 2. Annual depreciation expense was $30,000. 3. Paid cash dividend of $76.000. 4. No sale of fixed asset. 5. Current stock price is $2 for each stock. Required Prepare a Cash Flow Statement for the year 2015. (14 ) Calculate all the relevant Ratios for the year 2014 & 2015 and analyze the performance of the company based on liquidity, solvency, and profitability. Your analysis should reflect that the performance is improving or deteriorating and reasons behind that. (15+21)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions